SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 38 warehouse clubs located in 13 countries/territories that are located in Central America, the Caribbean and Colombia. In addition, the Company operates distribution centers and corporate offices in the United States. The Company has aggregated its warehouse clubs, distribution centers and corporate offices into reportable segments. The Company’s reportable segments are based on management’s organization of these locations into operating segments by general geographic location, used by management and the Company's chief operating decision maker in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues operating costs and inter-company charges included in the United States segment are not allocated to the segments within this presentation, as it is impractical to do so, and they appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions.

Prior to fiscal year 2015, the Company's operating segments, were the United States, Latin American and the Caribbean. During the second quarter of fiscal year 2015, the Company created a new operating segment comprised of its Colombia Operations and separated the Colombia Operations from the Latin America Operations, renaming that segment Central America Operations. The Company has made this change as a result of the information that the Company's senior operating management regularly reviews for purposes of allocating resources and assessing performance and the growing level of investment and sales activity in Colombia. Therefore, beginning in the second quarter of fiscal year 2015, the Company has reported its financial performance based on these new segments and retrospectively adopted this change for the disclosure of financial information presented by segment. This presentation more closely reflects the information reviewed by the Company's chief operating decision maker.

The following tables summarize by segment certain revenues, operating costs and balance sheet items (in thousands):



	United States Operations				Central American Operations		Caribbean Operations		Colombia Operations			Reconciling Items⁽¹⁾			Total

Three Months Ended November 30, 2015
Revenue from external customers	$	8,249			$	423,560	$	211,663	$	68,459		$	—		$	711,931
Intersegment revenues	314,621				—		1,438		—			(316,059		)	—
Depreciation and amortization	930				4,241		2,408		1,624			—			9,203
Operating income	5,479				33,709		13,590		(334		)	(15,149		)	37,295
Net income	1,727				26,202		11,803		(911		)	(15,149		)	23,672
Capital expenditures, net	909				11,181		3,982		3,275			—			19,347
Long-lived assets (other than deferred tax assets)	15,380				266,435		109,455		106,118			—			497,388
Goodwill	—				31,212		4,634		—			—			35,846
Total assets	71,467				529,699		278,149		168,279			—			1,047,594


Three Months Ended November 30, 2014
Revenue from external customers	$	8,431			$	383,164	$	198,391	$	66,035		$	—		$	656,021
Intersegment revenues	338,328				—		1,383		—			(339,711		)	—
Depreciation and amortization	542				3,644		2,288		1,323			—			7,797
Operating income	7,903				31,132		12,169		(937		)	(13,982		)	36,285
Net income	3,362				24,328		10,254		(3,315		)	(13,982		)	20,647
Capital expenditures, net	(2,773		)	⁽²⁾	14,806		3,196		14,391			—			29,620
Long-lived assets (other than deferred tax assets)	13,261				250,968		109,905		131,613			—			505,747
Goodwill	—				31,445		4,717		—			—			36,162
Total assets	69,240				503,941		249,220		214,731			—			1,037,132

As of August 31, 2015
Long-lived assets (other than deferred tax assets)	$	15,391			$	255,576	$	107,746	$	105,290		$	—		$	484,003
Goodwill	—				31,211		4,660		—			—			35,871
Total assets	89,167				491,548		239,311		171,666			—			991,692


⁽¹⁾	The reconciling items reflect the amount eliminated on consolidation of intersegment transactions.


⁽²⁾	The decrease in capital expenditures is a result of the transfers of capital assets from this segment to other segments.